Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
When my son was 11 years old, he passed the long New England winter by playing on a futsal (indoor soccer) team. Some of his teammates were overly enamored with their own fancy footwork and trick shots. Why pass the ball when you can dribble it between a couple of defenders’ legs and impress your teammates with your ability to “nutmeg”?
Their coach, however, was rarely impressed. “Simple! Simple!” this normally mild-mannered man would exclaim whenever the kids gave in to the temptation to showboat. “This game is so simple!” In other words, whenever possible, keep it simple, kids; you’re not Messi yet, so don’t try to be.
It’s not just preteen athletes who need to be reminded of this. I admit I often yearn to use a clever analogy (see above?) when a straightforward phrase would do. And I imagine it’s the same way in the distribution center. Especially these days, when a zippy little robot can carry your orders instead of Marty with a cart that resembles the ones used to bring in the AV equipment for sixth-grade science class. (See, there I go again.)
Which is why it was refreshing to chat with David Norton, vice president of customer solutions and support at lift truck company The Raymond Corp., during ProMat DX (MHI’s digital version of its biennial ProMat trade show). In spite of all the “gee-whiz technology” that Raymond has on offer, Norton was less interested in talking about automation and more interested in what you need to do before you can even think about automating your DC’s operations. Norton’s point was “Not everything can be automated. Automation may not actually be the right decision for you.”
Before automating, according to the folks at Raymond, DC leaders need to make sure they are at least following the basic tenets of Lean thinking. And by that, they don’t just mean eliminating unnecessary inventory. DC managers should also be sure that their space is well organized, the path that the products take through the facility is efficient, employees are following standardized processes, and available resources are being used effectively.
A common story, according to Norton, goes something like this: A company is experiencing a surge in business and comes to Raymond wanting to buy five new forklift trucks to help it meet the added demand. Often, however, the company has made that decision without first stopping to consider whether there are process improvements it could make. Are products moving through the warehouse in the most efficient way possible, or is there wasted time—or unnecessary steps? Could current resources be used to support the new orders?
In fact, the most common problem that Norton sees when he visits DCs is not a lack of automation. Instead, it’s a lack of focus on good organization and tidiness. (As someone who struggles with organization and tidiness, this point struck a rather uncomfortable chord with me.)
Basic housekeeping is so simple, so obvious (so boring?), that it’s easy to overlook. It’s hard to impress the boss by keeping a well-organized and clean DC (except maybe if your boss is my son’s soccer coach). But there is a cost associated with every scrap of wood that’s left on the floor instead of being disposed of; in every pallet that is not properly aligned on the rack; in every scanner that’s not put back into the locker at the end of the shift.
The message here is simple: Before you bring in that new piece of equipment, first make sure your house is clean and in order… and then maybe you’ll find you don’t need the fancy new machinery after all.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.